· Review your portfolio. Consider taking a loss if you have substantial capital gains.
· Review tax refunds. Are you loaning your money to the government tax free?
· If you owe state income taxes, consider contributing to a 529 College Savings Plan for your grandchildren. NY allows a deduction up to $5,000 (or $10,000 for married filing joint filers) for contributions made by an account owner to an account belonging to NY’s 529 plan.
· Plan your itemized deductions. If you are on the border for itemizing deductions focus on bundling. Time deductible expenses to produce lean and fat years. The goal is to surpass the standard deduction amount. Standard deduction rates for 2013 are $12,200 for married taxpayers filing joint and $6,100 for single taxpayers. The additional standard deduction amount for the aged or blind is $1,200.